Correlation Between Sixt Leasing and GRUPO CARSO-A1
Can any of the company-specific risk be diversified away by investing in both Sixt Leasing and GRUPO CARSO-A1 at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Sixt Leasing and GRUPO CARSO-A1 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sixt Leasing SE and GRUPO CARSO A1, you can compare the effects of market volatilities on Sixt Leasing and GRUPO CARSO-A1 and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Sixt Leasing with a short position of GRUPO CARSO-A1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt Leasing and GRUPO CARSO-A1.
Diversification Opportunities for Sixt Leasing and GRUPO CARSO-A1
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sixt and GRUPO is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Sixt Leasing SE and GRUPO CARSO A1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRUPO CARSO A1 and Sixt Leasing is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Sixt Leasing SE are associated (or correlated) with GRUPO CARSO-A1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRUPO CARSO A1 has no effect on the direction of Sixt Leasing i.e., Sixt Leasing and GRUPO CARSO-A1 go up and down completely randomly.
Pair Corralation between Sixt Leasing and GRUPO CARSO-A1
Assuming the 90 days trading horizon Sixt Leasing SE is expected to under-perform the GRUPO CARSO-A1. But the stock apears to be less risky and, when comparing its historical volatility, Sixt Leasing SE is 2.16 times less risky than GRUPO CARSO-A1. The stock trades about -0.08 of its potential returns per unit of risk. The GRUPO CARSO A1 is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 550.00 in GRUPO CARSO A1 on October 17, 2024 and sell it today you would lose (15.00) from holding GRUPO CARSO A1 or give up 2.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sixt Leasing SE vs. GRUPO CARSO A1
Performance |
| Timeline |
| Sixt Leasing SE |
| GRUPO CARSO A1 |
Sixt Leasing and GRUPO CARSO-A1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt Leasing and GRUPO CARSO-A1
The main advantage of trading using opposite Sixt Leasing and GRUPO CARSO-A1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt Leasing position performs unexpectedly, GRUPO CARSO-A1 can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in GRUPO CARSO-A1 will offset losses from the drop in GRUPO CARSO-A1's long position.| Sixt Leasing vs. COVIVIO HOTELS INH | Sixt Leasing vs. Playa Hotels Resorts | Sixt Leasing vs. The Hongkong and | Sixt Leasing vs. Park Hotels Resorts |
| GRUPO CARSO-A1 vs. SBI Insurance Group | GRUPO CARSO-A1 vs. Sixt Leasing SE | GRUPO CARSO-A1 vs. RYU Apparel | GRUPO CARSO-A1 vs. WILLIS LEASE FIN |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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